Viet Nam News

  In Global, Viet Nam News

Global credit ratings agency Moody’s Investors Service has reaffirmed the B1 credit rating for HDBank amid a challenging market situation due to the impact of the Covid-19 pandemic and social distancing orders from the Government.

Moody’s said the bank has good profitability, improving capitalisation and good portfolio of liquid assets and is making solid progress in risk management.

In its 2019 financial report released recently, HDBank had total consolidated assets of nearly VNĐ229.48 trillion (US$9.78 billion), equity of VNĐ20.38 trillion ($867.8 million) and profit before tax of nearly VNĐ5.02 trillion ($213.8 million), its highest ever.

Return on average assets (ROAA) and return on average equity (ROAE) were 1.8 per cent and 21.6 per cent.

HDBank’s non-performing loan ratio continued to be strictly controlled, at less than 0.98 per cent, placing it among the banks with the lowest NPL ratios in the banking industry, a status it has enjoyed for many years.

Last year it received approval from the State Bank of Vietnam to adopt Basel II standards ahead of schedule, and its capital adequacy ratio (CAR) reached 11.2 per cent, much higher than the minimum of 8 per cent prescribed.

In the first three months of this year, despite the COVID-19 pandemic and the big changes it wrought in the domestic and global markets, HDBank achieved very positive business results.

Consistent with its sustainable development strategy, harmonising its economic development goals and accompanying the community in all activities, HDBank has always come up with timely development strategies suitable for each period.

In response to the COVID-19 outbreak, HDBank quickly established an emergency committee for epidemic prevention and control, and has carried out effective measures. It has taken practical measures to protect the health of its employees and customers, and ensure continuous and safe operation of its entire system nation-wide.

In joining hands to support the economy and customers in this challenging time, HDBank is offering many preferential programmes. It has set aside VNĐ10 trillion ($426 million) to lend to producers and corporates who supply goods and services to supermarkets at interest rates starting at 6.5 per cent, VNĐ5 trillion ($213 million) to lend to small and medium-sized enterprises and VNĐ3 trillion ($127.6 million) for cutting fees and interest rates for enterprises that supply drugs and medical equipment.

It also offers preferential loans to individual and super small business customers affected by the pandemic at interest rates that are 2-4.5 percentage points lower than normal.

Besides, it has a VNĐ1 trillion ($42,703) package to support the agricultural supply chain to ensure production and domestic supply of rice and help businesses facing difficulties due to saltwater intrusion in the Mekong Delta.

It is also enhancing technology application and promoting cashless payment solutions. — VNS

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